Partner, Partner, Partner and Partner some more

Here is another simple, easy and profitable idea for your consideration.

Number 9 – Increase revenues and take advantage of strategic partnerships for one-stop-shopping convenience for consumers

Buyers and sellers too, want and demand ‘full’ service. They are more educated, sophisticated and savvier than ever before. They are busy too! In this economic reality that requires both husband and wife to be working to enjoy the rewards of home ownership, they need, want and demand ‘one-stop-shop’ convenience.

This trend is nothing new! But yet it is surprising how few real estate organizations are providing the ‘one-stop-shop’ environment that buyers and sellers not only want but are willing to pay for and leaving this golden opportunity to the sales associate who at best might be of some assistance.

Forget the fact that as real estate service providers your firm should be offering a full menu of options for buyers and sellers and just think about the increased revenues that are available for simply doing what the buyer and seller want your organization to do for them in the first place. If you do not have a strategic alliance with mortgage, title, insurance and other ‘full service’ organizations, then now is the time to jump in and reap the rewards. Strategic business partners are eager to reward organizations for new business you have passed along.

Strategic partners provide a ‘win-win’ scenario for real estate firms, their agents and the real estate consumer. Buyers do not want to be running all over town looking for the best mortgage, title, escrow, insurance, home warranty and other related service companies when they make the decision to purchase. Sellers also require professional services when selling their property.

How much can an organization owned by your company earn from origination fees for these services? Each firm will have their own specific strategic alliances, so the following example is just a ‘guesstimate’, but investigate this on your own and you will see why the leading real estate organizations have strategic business partners to increase their bottom line.

Assumptions (multiply by your actual numbers):

1 branch office
25 agents
25 transactions per month (300 sides per year)
$250.00 mortgage origination fee per side
20% of transactions use your strategic mortgage partner
Result - $15,000.00 additional revenue added directly to your bottom line
Using NAR $100.00 average profit per side the $15,000.00 would be like adding 150 more sides to your transaction total for this branch office

Now take this simple example and apply it to the many other services that are directly related to a real estate transaction:

Title
Insurance
Home Warranty

If your company is already aware of and taking advantage of this ‘one-stop-shopping’ opportunity, then the objective would be to increase the current success rate to a much higher number which is of course can happen when the client is ‘owned’ by the firm and not your agents.

Technology, like Profit Power, can create an automated pipeline that instantly informs your strategic business partners when a new buyer or seller has made the decision to buy or sell. Now your company’s business partners can take immediate action by contacting the client and offering them their professional services earlier in the sales cycle.

Each ‘lead’ can be tracked and monitored for post sale review and analysis to ensure the consumer is being properly served by your strategic partners and that your ‘one-stop-shop’ efforts are being rewarded. Many of today’s leading real estate firms understand the importance of providing the ‘one-stop-shopping experience’ and they are adding tremendous revenues to their bottom line. What a great way to increase profits on each sale when sale transaction numbers are not as robust as in the past.

Your firm will need consider RESPA and you will need to talk to your legal experts to get the correct information before implementing the ‘one-stop-shop’ business partner strategy.